ARGENTINA Law and Practice Contributed by: Juan McEwan and Agustín Lacoste, McEWAN
• Civil associations ( asociaciones civiles ) are non- profit legal entities with a public benefit purpose, governed by Chapter 2 of the CCCN. Unlike foundations, they are incorporated by a number of people willing to carry out their charitable purpose for the benefit of those who are members of the organisation. Incorporation of a Charity To incorporate a charity, the founding members must file the following documents with the local Public Reg - istry of Commerce ( Inspección General de Justicia ): • constituting documents – memorandum of asso - ciation and the by-laws ( estatuto ); • a financial forecast for the first three years; • details of activities to be performed during the first three years; and • evidence of paid-in capital or assets – the assets initially donated or promised to the foundation must be at least prima facie sufficient to carry out its purpose to obtain registration by the relevant authority. Registration of a Charity Local registration is mandatory, with the appropriate registry being determined by the domicile of the foun - dation or association. By way of example, in the City of Buenos Aires, foundations and civil associations are registered with and controlled by the Public Registry of Commerce, which is the government agency with supervisory authority over companies registered in the City of Buenos Aires. In other provincial jurisdictions, the same body that controls commercial companies may also oversee the regulating of charities and regis - tering them in the local Public Registry of Commerce.
Once the charity is registered with the Public Registry of Commerce, it must be registered with AFIP. AFIP will provide the charity with an identification number, identifying the organisation as a charity, with all appli - cable tax exemptions. Benefits The benefits for individuals when setting up a charita - ble organisation are as follows. • A separate legal personality – the law recognises the charity as having a separate legal personality to that of its founders or members, so people may engage in charitable activities limiting their respon - sibility, and the charity’s assets are segregated from the patrimony of the founder. • Tax benefits – most charities are exempt from property tax and/or VAT, and are income tax- exempt, provided the income is: (a) used for charitable purpose only; and (b) not directly or indirectly distributed among its members, founders or directors. 10.2 Common Charitable Structures See 10.1 Charitable Giving .
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